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HRD scraps LPG subsidy under mid day meal scheme

In a letter written to the principal secretaries and education departments of the states, the ministry has directed the states to bear the additional cost for procuring unsubsidised cylinder.

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To contribute in bringing down the government's subsidy bill, human resource development ministry has scrapped the LPG subsidy being extended to schools under the mid day meal scheme.

HRD ministry contributes Rs350 crores every year on providing subsidy on LPG. The cost will now have to be borne either by the states or the schools themselves. While the ministry is of the view that states have ample resources at their disposal, the experts feel that it is going to hit the quality of food being served in the schools.

In a letter written to the principal secretaries and education departments of the states, the ministry has directed the states to bear the additional cost for procuring unsubsidised cylinder.

The ministry is of the view that only 48 per cent of schools use LPG cylinder for cooking. Others depend on bio fuels. 11.58 lakh schools extend mid day meal facilities to 10.45 crores schools. But the ministry has no data to quantify the number of LPG cylinder used by schools. "We get a consolidated details from state governments. Ministry pays 75 per cent of the subsidy cost, 25 per cent is borne by the states," said an officer of the ministry.
The officer further added that the move has come after an order was issued by the ministry of finance on May 15. The HRD ministry has stopped the subsidy from April 1. "States have ample funds at their disposal in the 14th finance commission. They can utilise the money," said the ministry.

However curtaining the subsidy at a time when the budget allocations for the financial year has already been made, the move is likely to have a direct implication on the quality of food being served.

Experts feel that not all states will be comfortable allocating the extra funds in the middle of the financial year. " It is very unlikely for the states to put in the extra money. The quality of food served
to the children will have a great impact," said Komal Ganotra, director policy advocacy and research with CRY.

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